Marvell faces huge patent fine
Marvell faces huge patent fine
U.S. chip maker Marvell Technology confronted with one of the largest ever patent damages.
A jury in Pittsburgh found the company guilty of violating two hard drives innovations in the hands of the local university Carnegie Mellon.
Marvell said to $ 1.17bn (£ 723) in compensation to be paid - but this amount can be multiplied up to three times by the court because the jury also had said the law was "intentional".
Marvell shares fell more than 10%.
The maximum penalty would be in the neighborhood of $ 3.96bn worth of the company, which is based on market value.
Marvell told the Wall Street Journal will try to convince the court to reverse the judgment and will appeal if it fails.
Faster disks
Marvell makes a number of chips that include processors, power devices, including BlackBerry smartphones, Sony Google TV Internet video boxes and LED lighting controllers, and hard drives.
During the drive makers, have Western Digital is the largest customer in recent years.
Carnegie Mellon Marvell had accused of recording technology - invented by one of his professors and a student - designed for precision drives read data at high speeds.
Record Award
Damage allocation has the potential to be the largest in U.S. Patent history.
There are only two previous prices, according to the law dataProvider Lex Machina.
In 2007, Microsoft was ordered to pay $ 1.52bn Lucent Technologies in damages over disputed MP3 and MPEG video technology, and in 2009 Abbot Laboratories was ordered to pay $ 1.67bn for Centocor Ortho Biotech infringement of its antibodies biotech patents - There However, both sentences later destroyed.
But one expert said it would take some time before the details of the disk drive dispute would be implemented.
"It is generally the case that American juries major awards, and it is generally the case, they are reduced on appeal," Ilya Kazi of the Chartered Institute of the United Kingdom Patent Attorneys told the BBC.
"If history repeats itself Marvell could be faced with a small amount - but it is still too early to be sure how the process is going to look like."
U.S. chip maker Marvell Technology confronted with one of the largest ever patent damages.
A jury in Pittsburgh found the company guilty of violating two hard drives innovations in the hands of the local university Carnegie Mellon.
Marvell said to $ 1.17bn (£ 723) in compensation to be paid - but this amount can be multiplied up to three times by the court because the jury also had said the law was "intentional".
Marvell shares fell more than 10%.
The maximum penalty would be in the neighborhood of $ 3.96bn worth of the company, which is based on market value.
Marvell told the Wall Street Journal will try to convince the court to reverse the judgment and will appeal if it fails.
Faster disks
Marvell makes a number of chips that include processors, power devices, including BlackBerry smartphones, Sony Google TV Internet video boxes and LED lighting controllers, and hard drives.
During the drive makers, have Western Digital is the largest customer in recent years.
Carnegie Mellon Marvell had accused of recording technology - invented by one of his professors and a student - designed for precision drives read data at high speeds.
Record Award
Damage allocation has the potential to be the largest in U.S. Patent history.
There are only two previous prices, according to the law dataProvider Lex Machina.
In 2007, Microsoft was ordered to pay $ 1.52bn Lucent Technologies in damages over disputed MP3 and MPEG video technology, and in 2009 Abbot Laboratories was ordered to pay $ 1.67bn for Centocor Ortho Biotech infringement of its antibodies biotech patents - There However, both sentences later destroyed.
But one expert said it would take some time before the details of the disk drive dispute would be implemented.
"It is generally the case that American juries major awards, and it is generally the case, they are reduced on appeal," Ilya Kazi of the Chartered Institute of the United Kingdom Patent Attorneys told the BBC.
"If history repeats itself Marvell could be faced with a small amount - but it is still too early to be sure how the process is going to look like."
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